Amidst a steady stream of emotions, opinions and life lessons, the pandemic has delivered one message loud and clear: it’s time we challenged current leadership paradigms.
Yes, leadership begins at the top. But it’s not just about who drives your organisation forward, or whether ROI and growth targets are met.
Stakeholders and society are demanding more. They want transparency, accountability, and performance in all corners, but more importantly, an over-arching balance between financial and non-financial objectives. Culture and sustainability are under scrutiny as much as hard numbers and service offerings!
The loudest example is climate change. With so much evidence, publicity and research around this issue, company directors can’t ignore, let alone deny, that climate change will intersect with the interests of their firms… but it is possible to make intelligent decisions without jeopardising the bottom line.
Before you start tackling this or any other weighty issue though, it is essential that there is a relevant fit-for-purpose governance architecture. This requires doing the groundwork – clearly defining and delineating Board and Executive roles and establishing from the outset that the Board leads the way. From that vantage point, greater stakeholder and social engagement provides the opportunity to break free of ‘closed shop thinking’ and welcome more diverse, real-world ideas into your organisation.
Topics such as CSR and ESG require some heavy lifting. Again, this should be viewed through the lens of opportunity – to introduce fresh perspectives and offer directorship/committee membership to external subject matter experts. Evolving issues like data security and biodiversity know no bounds – geographic, industry or otherwise – and their impact can also be huge. Perhaps those issues deserve a seat at the table, so that the organisation can embrace change with clarity and confidence. What is important is that these topics are discussed and decisions taken in light of what leadership means, relevant to each organisation. There is no one size fits all.
Which brings me to the subject of diversity and inclusion. Does the Board lead by example? Or is D&I left solely in the hands of the HR department? Despite all our other advancements, true inclusivity is a rarity and yet research shows a positive correlation with retention and innovation – two qualities that could significantly help organisations emerge from the shadows of COVID more resilient and successful.
Whilst it’s clear to me that Boards must set the tone from the top, allow me to conclude by saying that an effective Board is not fuelled by separation or delegation from, but partnership, collaboration and alignment with their Executive team towards a common goal. Each has a distinct and active role to play to fulfil organisational objectives, but also to satisfy today’s society… a society which demands leaders of influence and meritocracy, not authority and bureaucracy.
This is governance through a new lens.
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Photo by Julien Flutto on Unsplash